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cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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I recieved a chapter 7 discharge. We our upside down in our

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I recieved a chapter 7 discharge. We our upside down in our house, we surrendered in the "BK", the lender has been sending us statements, and requesting documents to modify the loan. I am leary about signing anything, as I can't afford the original terms, and my partner in the home is income that in long term is not reliable. I would like to talk to a Bankruptcy lawyer that is specialized in realestate, to get advice about what is realistic. The lender is in the midst of a "Class Action Lawsuit" and required to offer "HAMP".
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 5 years ago.

Hi JACustomer,

What is your Bankruptcy Law question, please? (What would you like to know?)

Customer: replied 5 years ago.
Should we sign the modification documents that Wachovia has sent along with earning statements, and monthly billings for house? Does this reaffirm the loan?
Expert:  cfortunato replied 5 years ago.

No - if you apply for and receive a mortgage modification, that is not the same as re-affirmation. In a modification, the monthly payment typically gets reduced by around $100, and the term gets extended - usually to 40 years instead of 30 - but the balance of the mortgage is not reduced.

It may and may not be worth it for you to continue paying the mortgage for a house that is worth 1/2 of the mortgage amount.

Please let me know if there is anything additional that you would like to know.

Thank you!

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